Crypto Exchanges Surge as SpaceX Pre-IPO Perpetual Futures Gain Traction

By Elizabeth Howcroft

The Rise of SpaceX Pre-IPO Perpetual Futures on Crypto Exchanges

PARIS, June 11 (Reuters) – Before SpaceX goes public, crypto exchanges are giving traders a way to make risky bets on the company’s future share price.

Billions of dollars have flowed into instruments dubbed “pre-IPO perpetual futures”, which have no direct link to the underlying shares but are priced with reference to SpaceX’s latest disclosed pre-IPO valuation.

These types of derivatives, known as “perps”, are already used to bet on cryptocurrency price moves. They roll over indefinitely and allow investors to borrow in order to make bigger bets.

The popularity of new pre-IPO…